HomeMy WebLinkAboutAgenda Bill 4.A 05/17/2004s�
CITY OF PETALUMA, CALIFORNIA
°d t�
AGENDA BILL � � � (s4
' Agenda Title Discussion and Action Approving a Resolution
Meeting Date May 17, 2004
Confirming the Annual Report of the Downtown Petaluma Business
Improvement District and Levying an Annual Assessment for Fiscal
Year 2004.
Meeting Time ® 3:00 PM
❑ 7 :00 PM
Category (check one) ❑ Consent Calendar ❑ Public Hearing ❑ New Business
❑ Unfinished Business ❑ Presentation
Department
Director.
Contact Person
Phone Number
ED & Redevelopment
Paul Marangella
Paul Marangella
778 -4581
Cost of Proposal 0
Account Number NA
Amount Budgeted 0
Name of Fund NA
Attachments to Agenda Packet item
1. Annual Report from the Business Improvement District (BID) to the Petaluma City Council
2. Resolution Approving the Annual Report and Levying an Annual Assessment
3. Ordinance 2104 N.C.S:
Summary Statement
In November 2000, the Petaluma City Council adopted Ordinance 2104 N.C.S, establishing the Downtown
Petaluma (BID). In the ordinance, a Board of Directors is established to administer the affairs of the
District. Under section 6.40.100 of the Ord. inance, the Board of Directors must present the City Council
with an Annual Report and related budget information for review and approval prior to adopting. a
resolution of intention to levy: an. annual assessment for Fiscal Year 2004. , The fiscal year for the BID
begins on January I". On April 19,2004, the City Council considered the Annual Report, adopted a
resolution of intention to levy an assessment for FY 2004 and ordered a public hearing to be held on May
3, 2004, which was continued to May 17, 2004, pursuant to California Streets and Highways Code Section
36500 et seq. At the hearing, written and oral protests may be made in accordance with California Streets
and Highways Code Sections 36524 and 365 The City Clerk has published a: copy of the resolution in
accordance with State Law.
Therefore, the purpose of this item is to hold a public hearing on the levy of an assessment for FY 2004,
consider any public comments, and adopt a resolution confirming the Annual Report and authorizing the
levy of an assessment for FY 2004.
Recommended City Council Action /Suggested Motion
It is recarmnended, absent a majority protest against the levy or particular improvements or activities to be
funded by the levy, that' the City Council adopt the attached resolution confirming the 2004 Downtown
Business Improvement District Annual Report and authorizing the .levy of an assessment for FY 2004.
Rw4ewed by F finance birector•
Review i W
AOPFM&by City Manager:
Date:
ate: S
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Revis # an at wised:
File ode:
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04/23/0
T
CITY OF PETALUMA, CALIFORNIA
MAY 17, 2004
• AGENDA REPORT
FOR
DISCUSSION AND REPORT OFT E DOWNTOWN AP LOVING A RESOLUTION CONFIRMING THE ANNUAL
ALUMA BUSINESS IMPROVEMENT DISTRICT AND
LEVYING AN ANNUAL ASSESSMENT FOR FISCAL YEAR 2004.
1. EXECUTIVE SUMMARY
In November 2000, the Petaluma City Council adopted Ordinance 2104 N.C.S, establishing the
Downtown Petaluma (BID). In the ordinances a Board of Directors is established to, administer the
affairs of the District. Under. section 6:4,0.100 of the Ordinance, the Board of Directors must present the
City Council with, an Annual Report and related budget information for review and approval prior to
adopting a resolution of intention to levy an annual as for Fiscal Year 2004. The fiscal year for
the BID begins on January fft _ On April 19,2004, the City Council considered the Annual Report,
adopted a resolution of intention to levy an assessment for FY 2004 and ordered a public hearing to be
held on May 3, 2004, which was continued to May 17, 2004, pursuant to California Streets and
Highways Code Section 36500 et seq. At the hearing, written and oral protests may be made in
accordance with California: Streets and Highways Code Sections 36524 and 36525. The City Clerk has
published a copy of the resolution in accordance with State Law.
Therefore, the purpose of this item`is to hold a public hearing on the levy of an assessment for FY 2004,
consider any public comments, and, absent a majority protest against the levy or particular
improvements or activities to be funded by the levy, to adopt a resolution confirming the Annual Report
and authorizing the levy of an. assessment for FY 2004. .
2. BACKGROUND
The types of improvements and activities proposed for funding by the levy of assessments on businesses
in the District include:.
Sales/Marketing -. 32% - These funds are used to supplement additional funds paid by
individual merchants for the combined marketing efforts to create public awareness of thematic
events occurring in the downtown, i.e. Sidewalk Sale, Trick or Treat Trail, and other downtown
events such as those listed under "administration." PDA - develops joint marketing agreements
with the merchants using these funds and utilizes the combined buying power of the PDA and
merchant community to obtain favorable prices for advertising that would not ordinarily be
available to the individual merchant.
Beautification - 32 6 /o - A volunteer committee meets to consider requests for investing in
beautification projects downtown. The main focus of the committee will be to maintain the new
landscaping installed by the PCDC.
Administration - 20% , :- Collected funds go to the day -to -day operations of the PDA office.
Cost centers include rent, salary expense, and event coordination (implementation of downtown
• events like Butterand Egg Days, Antique Faires (2), Art and Garden Festival, etc.).
Security - 16 % - The ,PDA contracts, currently with Grapevine Security, for coverage of the
general downtown area to be performed on a regular nightly schedule. (The administration of
2
this contract is not to be confused with a separate contract not paid for with BID funds for the
Keller Street Garage.)
It was originally estimated that the BID would generate in excess of $75,000 annually. The City of
Petaluma has performed all the billing and collection services for the BID. However, actual revenue
from the BID have fallen far short of that estimate. Approximately 50 % of the BID members have paid
their assessments. Some have suggested that this has occurred for the following' reasons:
• Confusion About Man datory.Assessment: There has been confusion about whether the annual
assessment is mandatory or not. Thinking that it was voluntary, some have declined to. submit
their annual payments. In the next a "ssessment, a cover letter will be provided which states that
the assessment is mandatory.
• Confusing Billing: Method The billing. method required each business to calculate their own
assessment using a. confusing formula and minimal instructions. Rather than try to figure out
the correct payment., many chose to simply defer payment until -they were contacted. The
follow -up contact never came. This problem will be fixed in the next assessment, as the BID
members will receive a bill where the calculation is performed for them and a specific amount to
pay is shown as on the bill.
• Lack of Consequences for N6n- Payment: When BID members did not :pay their assessments
in 2001, the BID Board took a_ friendly approach hoping to encourage member to "do the right
thing" and pay their assessments. When people refused to pay; there were no penalties imposed.
Consequently, in subsequent years, the problem persisted and grew: The BID Board is
considering the possibility of sending delinquencies to collection and imposing penalties.
The 2004 Annual Report does not change the district boundaries or increase the assessment or modify
the method of assessment.
ALTERNATIVES: •
None. There, is no alternative process established in Ordinance 2104 N.C.S
4. FINANCIAL IMPACTS
Over the past three years, the BID has received the following from assessments:
• 2001 $27,633
• 2002' $37,202
2003 $23,862
The BID Board of Directors :has allocated the proposed budget of $72,000. This assumes that 90% of
the approximately 690 BID members pay an average assessment of $116. The BID budget isi allocated
as follows:
• 32%
Beautification
$23,040
• 32%
Marketing
$23,040
e 20 %
Administration
$14,400
• 16 %
Security
$11,520
Total:
$72,000
CONCLUSION
On April 19, 2004, the BID Directors submitted its Annual Report and,20.04.Proposed Budget. The City
has provided notice of a public hearing to levy the 2004 Assessment in accordance with State Law. The
City Council should hold the public hearing and, absent a majority protest against .the levy or particular
improvements or activities to be funded.by °the' levy, may levy the 2004 Assessment.
6.
1 0
7.
•
._........��,,..�.i. i.� l 11111 ♦�,,1LL+111L 1V llt! Y'_DUllt+;�lJ;VI(
The BID assessment is is-sued in:May 2004,, including recommended billing improvements and more
aggressive collection of delinquencies,, resulting'iri:anincrease in collections.
RECOMMENDATION
It is recommended that, absent activities too be funded b the lev a the Cit Counci against the. levy or particular improvements or
J Yp
Y . Y, y adopt the attached resolution confirming the 2004
Downtown Business Improvement District Annual Report and authorizing the levy of an assessment for
FY 2004.
0
Attachment 1
Annual Report from- the BID to the Petaluma City Council
•
5
S
Downtown Petaluma Business Improvement District
FY 2004 Annual Deport
1. Changes in Boundaries: None are proposed.
2. Changes in the Basis or Method of Assessment: None are proposed.
3. Changes in Classification .of Businesses: None are proposed.
4. Improvements /Activities to be Undertaken & Related'Budget: As proposed in the budget below.
5. Surplus /Deficit Carried Over from Prior Year: None
6. Contributions from Other Sources None
Downtown Petaluma Business Improvement District
2004 Budget Allocations
32% Beautification $23,040
32 % Marketing. $23,040
® 20 % Administration $14,40.0
16% Security $1.1,520
Total: $72,000
Beautification - 32% - A volunteer committee meets to consider requests for investing in
beautification projects downtown. The main focus of the committee will be to maintain the new
landscaping installed by the PCDC.
Sales /Marketing - 32% These funds are used to supplement additional funds paid by
individual. merchants for the combined marketing efforts to create public awareness of thematic
events occurring in the downtown, i.e., Sidewalk Sale, Trick or Treat Trail, and other downtown
events such as those listed under "administration." PDA develops joint marketing agreements
with the merchants using these 'funds and utilizes the combined buying power of the PDA and
merchant community to obtain favorable prices for advertising that would not ordinarily be
available to the individual merchant.
Administration; - 20% - Collected funds go to the day -to -day operations of the PDA office.
Cost centers include rent, salary expense; and event coordination. (implementation of downtown
events like Butter and Egg Days, Antique Faires (2), Art and Garden Festival, etc.).
Security 16% - The .PDA contracts; currently with Grapevine Security, for coverage of the
general downtown area to be performed on a regular nightly schedule. (The. administration of
this contract is not to be confused with a separate contract not paid for with BID funds for the
Keller Street Garage.)
32
Types of Businesses Assessed
Retail and Restaurant: Businesses that buy and resell goods, examples are clothing stores, shoe store •
office supplies and businesses that sell prepared foods and drinks.
Antique Collectives: Includes such businesses and business locations that represent multiple dealers of
antique merchandise within one location.
Service Businesses: Businesses that sell services. Examples are beauty and barbershops repair shops,
most automotive - oriented businesses, entertainment businesses, such as theaters, etc.
Lodging: Includes renting rooms by the day or week to community visitors.
Professional Businesses: Includes Architects, Engineers, Attorneys, Dentists, Doctors, Accountants,
Optometrists,. Mortgage Brokers, and most other businesses that require advanced and/or advanced
academic degrees.
Financial Institutions: Includes banking '
nd savings and loan institutions "as well as credit uiuons, etc.
Assessmentby Type of Business Within Zones
Restaurants &_ Retail
Zone A
$150 1 - 3 Employees)
$250 (4 -6 Employees) "
$350 (7+ Employees)
Zone B
$100 ( 1 -3 Employees)
$166 (4 -6 Employees)
$232 (7+ Employees).
Zone C
$ 50 1 -3 Em to ees
( p Y )
$ 83' (4 -6 Em loyees)
$116 (7+ "Employees)
Antique Collectives
$150 (1 -3 Dealers)
$100 (1 -3 Dealers)
$ 5,0 (1 -3 Dealers)
$250 (4 -6 Dealers)
$350 (7+ Dealers)
$166 '(4 -6 Dealers)
$232 (7+ Dealers)
$ 83 (4 -6 Dealers)
$,116 (7+ Dealers)
Service, Businesses
$.100 (1 -3 Employees /Operators)
$ 75 (1 -3 Employees /Operators)
$ 50 (1 -3 Employees /Operators)
200 (4 -6 Employees /Operators)
$300 (7+ Employees /Operators)
$150 (4 -6 EmployeeOOperators)
$ (7+ Employees /Operators)
$1,00 (4 -6 Employees /Operators)
$.150 (7+ Employees /Operators)
Professional Business
$125
$82
$41
Financial. Institutions
$500
$500
$500
Lodging
$150 (140 Rooms)
$150 (1 -10 Rooms)
$150 (1 -10 Rooms)
$300 (11 -25 Rooms)
$450 (26+ Rooms)
$300 (11 -25 Rooms)
$450 (26+ Rooms)
$300 (11 -25 Rooms)
$450 (26+ Rooms)
Note: Businesses in the Restaurant & Retail category will be charged according to the average number
of employees' ;reported quarterly to the State of California Employment Development Department o�
Form DE -6. Businesses in the Antique Collectives and Services Businesses categories will. be charged"
according to the number of dealers /operators active within one location.
7
Attachment 2
RESOLUTION # 2004-
CONFIRMING THE 2004 DOWNTOWN ;PETALUMA BUSINESS IMPROVEMENT
DISTRICT ANNUAL REPORT AND RELATED BUDGET AND ESTABLISHING THE
LEVY FOR THE 2004 ANNUAL ASSESSMENT FOR THE DISTRICT
WHEREAS, in November 20, 2000, in accordance with California Streets and Highways Code Section 36500
et seq. ( " the Act "), the Petaluma City Council adopted Ordinance 2 N.C.S., later codified as Chapter 6.04 of
the Petaluma .Municipal Code, establishing the Downtown' Petaluma Business Improvement District
( "DPBID "), within the area described in Exhibit 'l, which is attached to and made a part of this resolution; and
WHEREAS, Section. 6.04:050 of the Petaluma Municipal Code lists the types of improvements and activities
that may be funded by the levy of assessments Ton businesses within the DPBID as follows:
A. The acquisition, construction, installation or maintenance of any tangible property with an
estimated useful life of. -five years or more including, but not limited to, the following
improvements:
1. Benches
2. Trash receptacles
3. Decorations
4. Facade improvements
5. Permanent landscaping
B. Activities including but not. limited to the following:
1. Promotion of public events which businesses in the area and which take place on
or in public places within the area.
2. Furnishing of: music in any public'place in the area.
3. Activities which benefit businesses located and operating in the area, including but not
limited to, commercial shopping and promotional programs; and
WHEREAS, under section 6.04.100 of the Petaluma Municipal Code, the Board of Directors established to
govern the affairs of the DPBID must present the City Council with, an annual report and budget for review and
approval prior to City Council consideration of levying a benefit assessment for the following fiscal year; and
WHEREAS, the requirements of Petaluma Municipal Code Section 6.04.100 are in accordance with the Act,
which establishes annual procedures governing the levy of assessments pursuant to the Act, including
preparation of an annual report, adoption of a resolution of intent giving notice of a public hearing at which
written and oral protests may be, made concerning levy of an annual assessment, and adoption of a resolution
approving the annual report and levying the assessment; and
WHEREAS, Section 36,535 of the Act provides that public hearings on levy of annual assessments pursuant to
the Act must be conducted in accordance with Sections 36524 and 36525 of the Act, which provide as follows:
A. The city council shall hear and consider all protests against the establishment of the area,
the extent of the area, or the furnishing of specified types of improvements or activities within
the area. A.,protest may be made orally or in writing by any interested person. Any protest
pertaining to the regularity or sufficiency of the proceedings shall be in writing and shall clearly
set. forth the irregularity or defect to which the objection is made.
B. Every written protest shall be filed with the, clerk at or before the time fixed for the public
hearing. The city council may waive any irregularity in the form or content of any written protest
and at the public hearing may correct minor defects in the proceedings. A written protest maybe
withdrawn in_ writing at any time before the conclusion of the public hearing.
C. Each written protest shall contain a description of the business in which the 'person
subscribing "the protest is interested sufficient to identify the business and, if a person subscribing
is not shown on the official records of the City as the owner of the business, the protest: shall
contain or be accompanied by written evidence: that the person subscribing �is the-owner of the
business. A written protest which does not comply with this section shall not be counted in
determining a majority protest.
D. If written protests are received from the owners of businesses in the proposed area which
will pay 50 percent or more of the assessments proposed to be levied and protests are not
withdrawn so as to reduce the protests to less than that 50 percent, no further proceedings to
create the specified parking and business improvement area or to levy the proposed assessment,
as contained in the resolution of intention, shall be taken for a period of one year from the date of
'the finding of a.majorityprotest by the city council.
E. If the majority protest is_ only against the furnishing of a specified type or types of
improvement or activity within the area, those types of improvements or activities shall be
eliminated; and
WHEREAS, in accordance with California Streets and Highways Code Section 36533, the City Council has
reviewed and, preliminarily approved the 2004 .DPBID Annual Report and Budget submitted by the DPBID
Board of Directors at the regularly scheduled and duly noticed April 19, 2004 City Council meeting; and
WHEREAS, in, accordance with California Government Code Section 36534, at the regularly scheduled and
duly noticed April 19, 2004 City Council meeting, the City Council adopted a resolution of 'intention 'to levy the
2004 annual assessment for the DPBID, set a. public hearing on the annual levy for May 3,, 2004, and directed
the City Clerk to publish a copy of the resolution of intention in a newspaper of general circulation in the City at
least 7 days prior to the hearing; and
WHERAS, published notice of the hearing on the annual levy was given in accordance with California
Government Code Section 36534 and the resolution of intention adopted April 19, 2004; and
WHEREAS, the 2004 DPBID Annual .Report proposes no changes in the boundaries, method of assessment, or
rate of assessment related to the DPBID; and
•
WHEREAS, the PpBID 2004 Budget establishes the following budgetary priorities with estimated revenues
and expenditures; as specified in the 2004 PDBID Annual Report:
X
■ 32%
Beautification
$23,040
■ 32%
Marketing
$23,040
° 20%
Administration
$14,400
■ 16%
Security
$11,520
Total:
$72,000
WHEREAS, the 2004 Annual Report of the DPBID is on file at the City Clerk's Office for public review and
contains a full and detailed description of the DPBID improvements and activities to be provided for the 2004
fiscal year, the boundaries of the DPBID and any benefit zones within the DPBID, and the proposed
assessments to be levied on businesses in the DPBID for the 2004 fiscal year; and
WHEREAS, in accordance with California Streets and Highways Code Section 36524, on May 3, 2004, the
City Council opened the public hearing on the 2004 DPBID annual levy and continued the hearing until May
17, 2004 and heard and considered all protests against the annual levy, the DPBID area, the extent of the area,
or the furnishing of specified types of improvements or activities withn'the area; and
WHEREAS, in accordance with California Streets and Highways Code Section 36525, following the public
hearing on May 17, 2004, all written protests received• and not withdrawn were tallied and the City Council
determined that written protests concerning the assessment, or particular improvements or activities to be
funded by the assessment, were not received from. the owners of businesses in the DPBID area that will pay 50
percent or more of the proposed annual assessment;
NOW, THEREFORE, BE IT RESOLVED by the Petaluma City Council as follows:
1. The above recitals are true and correct and hereby declared to be (ridings of the Petaluma City Council.
�. The Downtown Petaluma Business Improvement District (")PBID") 2004 Annual Report and related
budget, which is attached to and made a part of this resolution as Exhibit 2, is hereby confirmed and
approved.
3. The billing improvements recommended.in the staff report are hereby approved
4. The Petaluma City Council hereby levies the assessment described in. the DPBID Annual Report and
Budget for Fiscal Year 2004 to pay for improvements and activities within the DPBID in accordance
with Chapter 6.04 of the Petaluma Municipal Code and the Act.
Adopted this 17 day of May, 2004 by the following vote:
Glass
Canevaro
Harris
Healy
Moynihan
O'Brien
Torliatt
Councilmember
Aye No Absent
*TEST:
Gayle Petersen, City Clerk
David Glass, Mayor
10
Exhibit 1
•
Boundary of the Petaluma Downtown Business Improvement District
11
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BUSINESS IMPROVEMENT
DISTRICT
PETALUMA DOWNTOWN
ASSOCIATION
NOVEMBER 2000
CITY OF PETALUMA
CALIFORNIA
n Y f i � 1 �'
Legend
Downtown BID
r•
�•_�� City Limit
Note: Labels represent zones
within the Business Improvement
District.
0 255 510 1,020 1,530 2,040
Feet
DISCLAIMER
These maps or plans were compiled and or digitized via electronic
means utilizing many source documents. it is intended to be
representative of certain physical, legal and geometric features
within the City of Petaluma. CA and its environs. The existence or
location of facilities must be field verified and this document does
not imply or guarantee neither adequate capacity nor the availability
of service The City of Petaluma assumes no responsibility regarding
the accuracy of the information presented herein for legal
documentation, representations of actual construction or for any
other purpose for which this map was not intended
GIS Division, April 7, 2004
Exhibit 2
Downtown Petaluma Business Improvement District
FY 2004 Annual Report
1. Changes in Boundaries: None are proposed.
2. Changes in the Basis or Method of Assessment: None are proposed.
3. Changes in Classification of Businesses: None are proposed.
4. Improvements /Activities to be Undertaken & Related Budget: As proposed in the budget below.
5. Surplus/Deficit Carried Over from Prior Year: None
6. Contributions from Other Sources: None
Downtown Petaluma Business Improvement District
2004 Budget Allocations
■ 32% Beautification $23
■ 32% Marketing $23
■ 20% Administration $14
go ■ 16% Security $11,520
Total: $72
Beautification - 32% - A volunteer committee meets to consider requests for investing in
beautification projects downtown. The main focus of the committee will be to maintain the new
landscaping installed by the PCDC.
Sales /Marketing - 32% - These funds are used to supplement additional funds paid by
individual merchants for the combined marketing efforts to create public awareness of thematic
events occurring in the downtown, i.e. Sidewalk Sale, Trick or Treat Trail, and other downtown
events such as those listed under "administration." PDA develops joint marketing agreements
with the merchants using these funds and utilizes the combined buying power of the PDA and
merchant community to obtain favorable prices for advertising that would not ordinarily be
available to the individual merchant.
Administration - 20% - Collected funds go to the day -to -day operations of the PDA office.
Cost centers include rent, salary expense, and event coordination (implementation of downtown
events like Butter and Egg Days, Antique Faires (2), Art and Garden Festival, etc).
IS Security - 16% - The PDA contracts, currently with Grapevine Security, for coverage of the
general downtown area to be performed on a regular nightly schedule. (The administration of
this contract is not to be confused with a separate contract not paid for with BID funds for the
Keller Street Garage.)
12
Types of Businesses Assessed
Retail and Restaurant: Businesses that buy and resell goods, examples are clothing stores, shoe stores
office supplies and businesses that sell prepared foods and drinks.
Antique Collectives: Includes such businesses and business locations that represent multiple dealers of
antique merchandise within one location.
Service Businesses: Businesses that sell services. Examples are beauty and barbershops, repair shops,
most automotive - oriented businesses, entertainment businesses, such as theaters, etc.
Lodging: Includes renting rooms by the day or week to community visitors.
Professional Businesses: Includes Architects, Engineers, Attorneys, Dentists, Doctors, Accountants,
Optometrists, Mortgage Brokers, and most other businesses that require advanced and/or advanced
academic degrees.
Financial Institutions: Includes banking and savings and loan institutions as well as credit unions, etc.
Assessment by Type of Business Within Zones
Restaurants & Retail
Zone A
$150 (1 -3 Employees)
$250 (4 -6 Employees)
$350 (7+ Em loyees)
Zone B
$100 (1 -3 Employees)
$166 (4 -6 Employees)
$232 (7+ Employees)
Zone C
$ 50 (1 -3 Employees)
$ 83 (4 -6 Employees)
$116 (7+ Employees)
Antique Collectives
$150 (1 -3 Dealers)
$250 (4 -6 Dealers)
$350 (7+ Dealers)
$100 (1 -3 Dealers)
$166 (4 -6 Dealers)
$232 (7+ Dealers)
$ 50 (1 -3 Dealers)
$ 83 (4 -6 Dealers)
$116 (7+ Dealers)
Service Businesses
$100 (1 -3 Employees /Operators)
$200 (4 -6 Employees /Operators)
$300 (7+ Employees /Operators)
$ 75 (1 -3 Employees /Operators)
$150 (4 -6 Employees /Operators)
$225 (7+ Employees /Operators)
$ 50 (1 -3 Employees /Operators)
$100 (4 -6 Employees /Operators)
$150 (7+ Employees /Operators)
Professional Business
$125
$82
$41
Financial Institutions
$500
$500
$500
Lodging
$150 (1 -10 Rooms)
$300 (11 -25 Rooms)
$450 (26+ Rooms)
$150 (1 -10 Rooms)
$300 (11 -25 Rooms)
$450 (26+ Rooms)
$150 (1 -10 Rooms)
$300 (11 -25 Rooms)
$450 (26+ Rooms)
Note: Businesses in the Restaurant & Retail category will be charged according to the average
number of employees reported quarterly to the State of California Employment Development
Department on Form DE -6. Businesses in the Antique Collectives and Services Businesses
categories will be charged according to the number of dealers /operators active within one
location.
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Ordinance 2104 N.C.S.
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Attachment 3
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ORDINANCE NO. 2104 N.C. S.
Introduced by Councilmember
Matt Maffuire
Seconded by Councilmember
Pamela Torliatt
AN ORDINANCE OF THE CITY COUNCIL OF THE CTTy OF PETALUMA,
CALIFORNIA,. ADDING CHAPTER 6.04 TO THE PETALUMA MUNICIPAL CODE
ESTABLISHING THE DOWNTOWN PETALUMA
BUSINESS IMPROVEMENT DISTRICT
RECITALS:
WHEREAS, on September 18, 2000, the City Council of Petaluma, on behalf of the City of
'1
Petaluma, (the "City"), adopted Resolution #00 -177 N.C.S. (the "Resolution " "), declaring its
intention to establish a Parking and Business Improvement District (hereinafter referred to as the
"District "), to levy a benefit assessment on all businesses, trades, professions, and vendors within
said District, the proceeds of which shall be used for the public purposes herein described to
benefit the businesses in the District, pursuant to the Parking and Business Improvement Area
Law of 1989, Part 6 (commencing with Section 36500) of Division 18 of the California Streets
and highways Code (the "Act "); and,
28 WHEREAS, pursuant to the Act and the Resolution, City conducted a public hearing, after
29 having given due .notice thereof as required by law, on October 16, 2000, at 7:00 PM, at City
30 Hall, 11 English Street, Petaluma, California; and,
31
3� WHEREAS, said public hearing has been held and the City Council has heard and considered
all oral and - written rotests and other c
P omments regarding such proposed actions; and
Ord. 2104 NCS Page 1
I WHEREAS, protests in writing from businesses in the proposed District paying 50% or more of .
2 the proposed assessment have not been received; and,
3
4 WHEREAS, this City Council has now determined to establish the proposed District as a
5 Parking and Business Improvement Area, to provide for the imposition of a benefit assessment
6 and to adopt an ordinance to such effect; and,
7
8 WHEREAS, in the opinion of this City Council, the businesses within the District will be
9 benefited by the expenditure of the funds raised by the assessments levied hereby in the manner
10 prescribed herein; and,
11
12 WHEREAS, this City Council may, for each of the purposes set forth in Section 36510 & 36513
13 of the Act, establish one or more separate benefit zones based upon the degree of benefit derived
14 from the formation of the District, and may impose a tiered assessment or charge within each of
15 the benefit zones; and,
16
17 WHEREAS, all provisions of the Act applicable to the establishment, modification, or
1S disestablishment of a District shall apply to the establishment, modification, or disestablishment
19 of benefit zones pursuant to the Act, and the establishment or the modification of any benefit
20 zone shall follow the same procedure as provided for under the establishment of a parking and
21 business improvement district; and the disestablishment of a benefit zone shall follow the same
22 procedure as provide for disestablishment of a District; and,
24 WHEREAS, upon the request of the District Board of Directors, this City Council shall
25 commence the proceedings required by law to amend the boundaries, assessments or charges
26 established pursuant to this Ordinance subject to approval of the Board of Directors of the
27 District as expressly provided for herein; said modifications being made pursuant to the
28 procedural requirements of the Act, but no assessment or charge shall be modified which would
29 impair the ability of the District to meet the obligations of a contract to construct or operate
30 physical improvements in the District; and,
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Ord. 2104 NCS paUe 2
I WHEREAS, adjustments may be made in the assessments or charges to businesses in the
2 ' District, or in the uses to which the revenue shall be put, as specified in this Ordinance
and
3 subject to Board approval, provided such changes are made by a supplemental Ordinance
4 adopted after a hearing before the City Council; and,
5
6 WHEREAS, f6r purposes of the assessments or charges to be imposed pursuant to this
7 Ordinance, this City Council may make a reasonable classification of businesses, giving
8 consideration to various factors, including general benefit to businesses and the degree of benefit
9 received from District programs; and,
10
11 WHEREAS, the assessments or charges levied on businesses pursuant to this Ordinance shall, to
12 the maximum extent feasible, be levied on the basis of the estimated benefit to the businesses
13 within the District.
14
15 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PETALUMA DOES
�16 ORDAIN AS FOLLOWS:
17
18 Section 1. Resolution of Intention, Public Hearing and Findings. The Recitals hereof, which set
19 forth facts regarding the adoption of Council Resolutions, the conduct of public hearings and
20 certain .findings of the City Council, are true and correct and incorporated herein by reference.
21
22 Section 2 . CHAPTER 6.04 is hereby added to the Petaluma Municipal Code, providing as
23 follows:
24
25 CHAPTER 6.04 DOWNTI'O'" PETALUMA BUSLNES S PAPRO«AgBNT DISTRICT.
26
27 6.04.010 Definitions.
28 In order to distinguish between District businesses and for the purpose of calculating and
d
29 applying the amount of assessments owed, the following dennitions shall apply:
Ord. 2104 NCS Page 3
I A. Retail Businesses:. "Retail Businesses" include all businesses not covered by other •
2 definitions set out in this section, at least fifty percent 50% of whose
Y P (^ ) gross income is
3 derived from "retail sales" as that term is defined under the California Sales and Use Tax
4 Law. The fact that a substantial part of its business consists of sales other than retail sales
5 does not exclude said business from this classification so long as such other business
6 component does not account for more than fifty percent (50 %) of said business' gross
7 income;
s
9 B. Restaurants: "Restaurant" businesses include cafes, eating establishments, sandwich
10 shops, dinner houses, restaurants and fast food services and other similar businesses;
11
12 C. Antique Collectives: ".Antique Collectives" includes such businesses and business
13 locations that represent multiple dealers of antique merchandise within one location.
14
15 D. Service: "Service" businesses include businesses that combine retail and product services:
16 Examples are appliance stores, most automotive - oriented businesses, repair shops,
17 repairing and servicing businesses and service stations. Other businesses of a general
is service -type nature such as general office, news and advertising media, printers, renting
19 and leasing businesses, utilities, vending machine businesses, household finance
20 companies, entertainment businesses and other similar businesses not otherwise included
71 in categories a, b, c, e, f, or g are included in this section;
22
23 E. Lodging: "Lodging" businesses include inns, hotels, motels, RV Parks and other similar
24 businesses;
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26 F. Professional: "Professional" includes attorneys, architects, accountants, engineers,
27 surveyors, physicians, dentists, optometrists, chiropractors and others in a medical I
29 health service field, consultants, real estate brokers, financial advisors, laboratories
2 9 (including dental and optical), hearing aid services, artists, photographers and designers.
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Ord, 2104 NCS Pgap.. 4
I G. Financial: Banks, savings & loans, credit unions, etc.
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K. Calendar Year: "Calendar fear" means January 1st to and including December 31st of
4 the same year.
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6 I. Billing Period: "Billing Period" shall refer to the period of any portion of a calendar year
7 in which a business operation as defined above.
8
9 6.04.020 Establishment of Boundaries.
10 A Parking and Business Improvement District is hereby established pursuant to the Parking and
11 Business Improvement Area Law of 1989, Streets and Highways Code Section 36600 et seq. The
12 boundaries of the District and the benefit zones within the District shall be as set forth on the
13 Exhibit "A ", as attached to the Ordinance adopted to create said District and incorporated herein
14 by reference. This District shall be known as the "Downtown Petaluma Business Improvement
15 District" (the "District "). P nt
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6.04.030 Establishment of District Board of Directors.
18 There shall be a Board of Directors ( "Board ") of the District to administer the affairs of the
19 District. Said Board shall be constituted of businesses within the District. Within the Board there
20 shall be a President, Vice - President, Secretary and Treasurer elected by the membership, and
21 such other officers as deemed necessary by the Board. Such other officers shall be appointed by
22 the Board of Directors at their discretion. All voting within the District regarding election of
23 Board Members and any actions regarding the normal and routine conducting of District
24 Business shall be based on one (1) vote per assessed dollar, and said business must be current in
25 payment of their District assessment(s) to participate in such votes.
26
27 6.04.040 Establishment of Benefit Assessment.
28 All businesses, trades, and professions located within the District boundaries shown on the
29 Exhibit "A" referenced in Section 6.04.030, shall, commencing January 1, 2001, pay an annual
0 30 benefit assessment to the District in an amount adopted by Resolution of the City Council of the
City of Petaluma.
Ord. 2104 NCS Page 5
1 6.04.050 Purpose and Use of Benefit Assessments.
2 The types of improvements and activities proposed to be funded by the levy of assessments on
3 businesses in the District are as follows:
4
5 A. The acquisition, construction, installation, or maintenance of any tangible property with
6 an estimated useful Iife of five years or more including, but not limited to, the following
7 improvements:
8 1 Benches;
9 2 Trash receptacles;
10 3 Decorations;
11 4 Facade improvements;
12 5 Permanent landscaping
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14 B. Activities including but not limited to the following:
15 1 promotion of public events which benefit businesses in the area and which take
16 place on or in public.places within the area;
17 2 Furnishing of music in any public place in the area;
18 3 Activities which benefit businesses located and operating in the area, including
19 but not limited to commercial shopping and promotional programs,
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21 6.04.060 Exclusions From Benefit Assessment.
22 No person or business shall be required to pay an assessment based on: (a) a residential use of
23 the property within the District, or (b) a non -profit organization as defined by Section 501 (C) (3)
24 or (C) (6) of the Internal Revenue Service Code located within the District.
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6.04.070 New Business Assessment Waiver.
Any new business established within the District shall not -be required to pay an assessment for
the Billing Period during which said business is initiated. The business will have been
considered initiated on the date of issuance of the business license. This waiver shall not apply to
an existing business that has changed ownership or location within the District. City agrees to
supply the District with timely information regarding new businesses initiated within the District.
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Ord. 2104 NCS v
1 6.04.080 Collection of Downtown Benefit Assessment.
• 2 The benefit assessment authorized by this Ordinance for Downtown Petaluma businesses
3 (Section 5.0 hereof), shall be billed and collected each Calendar Year. The BID Advisory Board
4 may, from time to time, assess late charges on unpaid BID assessment charges.
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6 6.04.090 Voluntary Contributions to District.
7 Contributions to the District shall be permitted on a voluntary basis. The boundary of the
8 District shall not be modified as a result of the contribution, nor shall said contributing business
9 be considered a member of the District for voting or other purposes. However, said business
10 making a voluntary contribution may be entitled to participate in the programs of the District
11 upon a finding by the Board of Directors that the District derives a benefit from said business'
12 participation in the program.
13
14 6.40.100 Annual Budget Process.
15 Pursuant to the Act, it shall be necessary for the District Board of Directors to present an annual
40 6 budget for City Council review and approval prior to the beginning of each Fiscal Year. The
17 purpose of this process is to comply with the Act provisions regarding public notice and hearing
18 prior to establishing the benefit assessments for the following Fiscal Year. City shall not adopt,
19 modify or otherwise amend any Fiscal Year budget of the District that is inconsistent in any way
20 with said Fiscal Year's budget as agreed to and presented by the District Board of Directors
21 except in the case of a written majority protest (regarding elimination or modification of any
22 specific budget item) from business owners which will pay 50% or more of the assessments
23 proposed to be levied as to any specific budget item pursuant to GC Section 365- " (b). In such
24 case the written protest regarding any specific budget item shall be grounds to eliminate or
25 modify said expenditure from the District's proposed budget pursuant to the written protest.
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27 6.40.110 Decisions Regarding Expenditure of Funds.
28 As provided for within the guidelines of SB 1424, decisions of the District Board of Directors
29 regarding expenditure of all funds generated under this program shall be final.
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Ord. 2104 NCS Paae 7
1 6.40.120 District Proceeds Do Not Offset City Services. •
2 City specifically finds and declares that the funds derived from the District shall not be used to
offset or diminish current maintenance, capital improvement programs, including but not limited
4 to, public property and sidewalk cleaning, street cleaning and maintenance, tree maintenance,
5 restroom cleaning and maintenance. The City is not bound or obligated to any specific amount
6 of funding to the District.
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8 6.40.130 Dis establish m ent of the District.
9 Proceeding to disestablish the District shall be initiated by the City Council following the
10 presentation of a petition to the City Council signed by business owners paying 50% or more of
11 the assessments levied in the District. Proceedings to disestablish the District shall follow the
12 procedures set forth in GC Section 36550. The City Council shall disestablish the District 4
13 following the public hearing prescribed in Section 36550 (b), written protests are not withdrawn
14 as to reduce the protests below the 50% level. In the event of disestablishment of the District,
15 remaining revenues of the District shall be refunded to paying business owners in a pro -rata
16 manner calculated in the same manner as was used to establish the most recent assessments
17 applied in the District.
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19 Section 3 . If any section, subsection, sentence, clause or phrase of this ordinance is, for any
20 reason, held to be invalid or unconstitutional, such invalidity or unconstitutionality shall not
21 affect the validity or constitutionality of the remaining portions of this ordinance, it being
22 expressly declared that this ordinance and each section, subsection, clause and phrase hereof
23 would have been prepared, proposed, adopted, approved and ratified irrespective of the fact that
24 any one or more other sections, subsections, sentences, clauses, or phrases be declared invalid or
25 unconstitutional.
26
27 Section 4 . The ordinance shall take effect upon the thirty -first (31st) day after its final passage.
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Ord. 2104 NCS
• I INTRODUCED and ordered Posted/Published this 16th day of October 2000. ADOPTED this
2 20th day of November, 2000, by the following vote:
4 AYES: Healy, Keller, Cader- Thompson, Hamilton, Maguire, Vice Mayor Torliatt, Mayor
5 Thompson
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NOES: None
ABSENT: None
ADS TAIN: None
Mayor
ATTEST:
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Cit1''IClerlc
Ord. 2104 NCS
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3usiness Improvement District He